IGTA Journal - Summer 2018

What is to be expected for the current business year? We remain at what we have said: When negative events at the capital markets as well as catastrophies of nature like in the past year do not happen, then we should remain at the payout of 5 Euro dividend per share, including special dividend. In this year, there is a good development for Hannover Re at the premium revenues. What is the reason? In the past year, there have been overproportionately high damages with the 3 great hurricans which we name with the abbreviation “HIM”, namely “Harvey”, “Irma” and “Maria”. This had the effect that the average return of the reinsurance industry has only been between 3 and 4 %. This is not sufficient. So, there have been price increases at the programs and the reinsurance contracts. However, they have not been as high as we would have wished it. Are the objectives for the growth in this year for the two business lines unchanged after the second quarter? We have in the first quarter increased the forecast for the premium growth in this year at over 10 %. Reason for this was especially the dynamic development in the property & casualty reinsurance business and here especially in the area of structured reinsurances. This yearly forecast we continue to maintain. With this success, can one also explain the alltime high of the Hannover Re-share at 122,20 Euro as of May 7, 2018, with the announcement of the numbers for the first quarter? The result of the first quarter has certainly supported the equity price. Even when we say that growth is, compared with profit, not the most important: Growth is indeed a positive news for the capital market. The capital market does honour, when a corporation not only achieves to be profitable but when it also achieves to grow profitably. The profitable growth , together with an attractive dividend return, has enhanced the equity price as of our annual shareholder meeting on May 7. In the insurance industry starting 2021, the accounting standard IFRS 17 is applicable which is aiming at providing comparable accounting regulation information for insurance contracts, in order to make the effects on the state of assets finance and profit situation as well as the cash flows of a corporation understandable. What means the change for Hannover RE? The new norm is applicable starting 2021, but we also want to deliver comparisons with the previous year. That means, at the end of 2019 everything has to be in place. We are in the middle of the preparations for this change. With this goes along a very high expense, which competitors of ours have already compared with the preparation for Solvency II. It will necessitate a new view at the balance sheet and at the profit and loss account. A contract will be evaluated with all expected returns until the end of its maturity. With the change, however, IGTA eJournal | Summer 2018 | 19